1. Middle East University
Faculty of Information Technology
Department of Computer Information Systems
MID TERM EXAM 2012-2013
Information System Development
Proposed By: Jasour A.Obeidat
Student #
Student Name
Date & Time
Exam Duration
Exam Notes
The following question covers chapter four from the information
system development course.
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2. Question No.1: Short Answers Question
a. Briefly list the Project Feasibility Types?
Answer:
- Operational Feasibility
- Technology Feasibility
- Legal Feasibility
- Political Feasibility
- Schedule Feasibility
- Economic Feasibility
b. What is Cost Benefit Analysis? And List its Tradeoffs ?
Answer:
It can be defined as identifying all financial benefits with costs
associated with information system project
Tradeoffs in Cost Benefit Analysis
- Tangible Vs. Intangible Benefits
- Tangible Vs. Intangible Costs
- Onetime Vs. Recurring costs
c. List the actors whom should be determined in BPP?
Answer:
- People who will use the new information system.
- Organizational department who will affected by the new
information system.
- The current system who will interact or changed by the new
information system.
- Range of potential capabilities of the system.
d. Briefly list the types of risks related in the IS planning?
Answer:
- Large system size.
- Long system development period.
- User groups risk.
- Development team risk.
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3. Question 2. Contrast Questions
a. Compare between Tangible verses Intangible benefits? List three
examples for each?
Answer:
Tangible benefits: is the benefits that can be measured by dollars
and certainty such as:
- Error Reduction.
- System Availability and Flexibility.
- Improved Processing and Performance.
Intangible benefits: the benefits which can't be measured by dollars
or certainty such as:
- System Decision Making.
- Information Processing Efficiency.
- Understanding and learning the organization.
b. Compare between Onetime Costs verses Recurring Costs? List
three examples for each?
Answer:
Onetime costs: leads to the costs which is paid for startup the
proposed information system such as:
- New Hardware.
- New Communication
- Site preparation.
- User Training.
Recurring Costs: leads to the cost which is paied frequently while
the system is implemented and working such as:
- Software Maintenance.
- New Software Updates.
- Incremental in data storage.
c. Differentiate between the SOW and SSR?
Answer:
Statement of work (SOW): is a document represent a contract
between the information system staff and consumer for estimating
time for system development project.

4. System Service Request (SSR): is a document represent a form for
requesting a service or maintenance of an information system and
it may include:
- Contact person information.
- Statement of problem.
- Liaison person information
- Service request statement.
d. Differentiate between BPP verses PSS?
Answer:
Baseline Project Plan (BPP): is a document intended to guide the
project development team and it main contain:
- Introduction.
- Project Description.
- Assessment and Feasibility.
- Management Issues.
Project Scope Statement: is a part of Baseline project plan
introduction and it may contain:
- Project Description.
- Project Objectives.
- Problem Statement.
- Estimate Time (Duration).
- Business Benefits.
- Deliverables.
e. Differentiate between Technology Feasibility and Economic
Feasibility?
Answer:
Technology Feasibility: is a process for assessing organization
ability to construct the proposed information system in it.
Economic Feasibility: is the process of assessing the financial
benefits and costs of the proposed information system.
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5. Question 3. Discussion Questions
a. Describe the initiation phase from tasks to outcomes and show how
it is correlated together?
Answer:
The initiation tasks can starts from defining the initiation team,
defining the relationship with customers, designing the project
initiation plan, determining the management procedures, and
designing the project workbook.
After running all of these tasks we have to take the results as
business case which can be defined as the justification for the
information system in order to express the tangible costs,
intangible costs, technical, and business benefits. Designing
statement of work and baseline project plan.
b. Describe how the project plan can be done for information system
development?
Answer:
Project plan can be done through several tasks started from
identifying project scope, feasibility, alternatives, dividing project
into tasks, developing preliminary budget, design preliminary
schedule, design communication plan, identifying resources
requirements, identifying procedures and standards, identifying and
assessing risks, setting the statement of work, and set the baseline
project plan.
c. There are three measures used while making the economical
feasibility. Show these measures? (Be Specific)
Answer:
There three measures used for designing the financial feasibility
which can be considered as the following:
 Present Value (PV): this measures uses the discount rate to
express the present value of cash in future either for receipts or
outlays.
 Net Present Value (NPV): this measure can be calculated by
summing all present values.
 Return on Investment(ROI): this measure used to find the ratio
between the overall of cash for benefits to the overall of cash to
the costs.

6.  Break even analysis (BEA): this measure used to find at what
time the organization will satisfy its needs in case the benefits
will be equal to costs.
Question 4. Calculation Questions
a. Suppose that startup cost for building Pharmacy One inventory
software was $15000. Find out the NPV for the first three years.
(Hint: Assume that the discount rate 5% for each year.)
Answer:
We have to find the Present value for each year based on the
present value formula :
PVn= Y * ( 1 + 1 / (1+ i)n )
By inserting the cash into the equation we will have the following:
PV1 = 15000 * ( 1 / ( 1 + 0.05)1)  PV1 = $14286
PV2 = 15000 * ( 1 / ( 1 + 0.05)2)  PV2 = $13605
PV3 = 15000 * ( 1 / ( 1 + 0.05)3)  PV3 = $12958
The above results represents the present values for 1st year, 2nd
year, 3rd year as , PV1,PV2,and PV3 respectively.
In order to find the NPV we have to sum all present values as the
following
NPV=14286+13605+12958  $40849